Oxford BioMedica confirms private equity takeover talks

UK contract development and manufacturing organisation (CDMO) Oxford BioMedica confirmed this morning that it has received an unsolicited approach from private equity group EQT about a possible takeover.

Stockholm-listed EQT has inquired about making a cash offer for all of Oxford Bio's shares, according to the CDMO, which added that it is now in "preliminary discussions to explore whether a proposal can be made at a level that the board would be minded to recommend."

Shares in Oxford Bio shot up 15% yesterday after rumours of an overture from EQT surfaced, including in an article in the Financial Times, and are up more than a third since the start of the year. It confirmed EQT's request after the markets closed yesterday.

The company – which specialises in the development and production of cell and gene therapy (CGT) products – has been enjoying buoyant revenue growth and a strong order book, in part resulting from a strategic expansion in the US and its 2024 acquisition of ABL Europe for €15 million ($16 million).

In its interim results published last September, revenues were up 44% to more than £73 million ($98 million), with a doubling in contracted client orders to £149 million.

Shortly after that, the company acquired a commercial-scale, viral vector manufacturing facility in North Carolina for £3.4 million, saying it would be operational in the first quarter of this year and help meet its strategy of building capacity in the US.

The strong growth rate has caught the eye of EQT, which reportedly made previous unsolicited proposals to buy Oxford Bio that were rejected for undervaluing the company and its prospects. There's no word yet, however, on how much the private equity firm may be prepared to offer for the business, which currently has a valuation in the region of £1 billion.

According to the FT, there has been a trend of late for investment groups to take publicly-listed European companies private, "to profit from the continent's relatively cheap stocks."

In its statement, Oxford Bio stressed there is no certainty that any firm offer for the business will be made, and that any offer will have acceptable terms. According to UK regulations, EQT now has to come to the table with a proposal by 5 pm on 11th February, UK time, or announce it does not intend to proceed further.